Question

It costs Charlie’s Car Repair Shop $27 to change the oil. The shop charges their customers $40 for an oil change. What is the percent of markup in the cost of an oil change?

Answer 1

18.1%

Explanation:

The markup is the difference that exists between the price that a product had and its "real" price as a percentage of the cost. This markup is what brings profit to a seller.

In this example the cost of changing the oil to the shop is $27. However, the oil change is sold to people at $40. This means that there is a difference of:

40 - 27 = 13

$13 represents 48.1% of $27, which means that the percent of markup is 48.1%

Answer 2

Markup on cost = ((selling price)/(cost) -1)*100%
.. = (40/27 -1)*100%
.. ≈ 48.1%